At a glance
- The study, Building for Generations, examined how succession planning is affecting investment, governance, philanthropy, credit and technology decisions.
- For managers raising capital from family offices, private equity is the largest piece of the alternatives allocation at 27%, with 59% intending to add over three years.
- Some 77% of family offices expect philanthropic priorities to change as the next generation takes a greater role.
Nearly four-fifths of family offices with a prospective next-generation principal, 79%, expect alternative investments to take an expanding share of their portfolios in the years ahead, according to Bank of America's 2026 Family Office Study.
The study, Building for Generations, examined how succession planning is affecting investment, governance, philanthropy, credit and technology decisions. Escalent conducted the research, surveying 355 family office decision makers in the US. Private Banker International reported the findings Oct. 21.
For managers raising capital from family offices, private equity is the largest piece of the alternatives allocation at 27%, with 59% intending to add over three years. Direct ownership stakes were named a leading opportunity for long-term wealth creation by 38%, against 51% for private equity, which suggests the pitch competes with the family's own balance sheet as much as with rival funds.
Succession reaches beyond allocations. Some 77% of family offices expect philanthropic priorities to change as the next generation takes a greater role.
Sports investments are becoming more common: four in 10 family offices currently invest in sports, and offices with at least one Gen Z or Millennial principal were the most likely to hold sports teams or sports-related assets.
Governance and family education were viewed as important for keeping families aligned on priorities by 91% of offices, but only 40% have a formal family education programme. Regular employee use of artificial intelligence stands at 42%, mainly for data analysis, meeting summaries and automation.
Credit is used by 92% of family offices, but only 27% use leverage consistently within a long-term wealth strategy. The most common uses are supporting real estate investments, cited by 45%; remaining invested through market cycles, at 42%; and meeting short-term liquidity needs, at 38%. The distance between the 92% and the 27% is the study's least resolved number: most offices borrow, and fewer than a third have written leverage into the strategy itself.
Reported by The Allocation desk from Private Banker International. Published . Corrections